APS Bank confirms its interest to acquire HSBC Malta

APS Bank plc has confirmed its interest in pursuing the acquisition of the 70.03% holding of HSBC Continental Europe in HSBC Bank Malta plc, and has submitted a “non-binding offer.”

Earlier on Thursday, HSBC Bank Malta said in a company announcement that “A number” of parties have shown interest in acquiring HSBC Holdings’ indirect 70% shareholding in its Malta bank. It had said that it was advised by its majority shareholder, HSBC Continental Europe, that HSBC Holdings has been contacted by a number of parties who have expressed interest in its shareholding in the Bank and have requested to conduct due diligence prior to confirming their interest.

HSBC Bank Malta had also said it would be convening an extraordinary general meeting to obtain shareholder approval to allow interested parties to conduct due diligence checks and take negotiations to the next level. 

In a company statement later in the day, APS Bank declared its interest, showing that it is one of the “number of parties” which HSBC mentioned as having expressed interest in its shareholding in the Bank.

APS Bank said: “In line with its regulatory obligations, and consistent with its standards of good governance, the Bank wishes to declare and confirm its interest in pursuing the acquisition of the 70.03% holding of HSBC Continental Europe in HSBC Bank Malta plc, and that it has accordingly submitted a Non-Binding Offer to the ultimate parent, HSBC Holdings plc.”

APS Bank further announced that it is being assisted in the process by Alvarez & Marsal as lead financial advisor, and Ganado Advocates as legal counsel.

“Other advisors are lined up to join once work on a potential transaction, including any due diligence exercise, unfolds in due course. During this period, the Bank’s Board of Directors and Management will be engaging with their various stakeholders to help inform them further about the rationale and merits of such an acquisition. Foremost will be the shareholders, and primarily the Qualifying Shareholders AROM Holdings Ltd (55.0%) and the Diocese of Gozo (12.7%), and their own advisors, whose endorsement is being enlisted,” APS Bank said.

“As shown consistently in recent years, the Bank has been growing steadily, improving efficiencies, services and revenues thanks to the significant transformational investment in technology, people and systems. This has led the APS Bank Group to a strong market position which also brings with it greater responsibilities. The Bank has long identified the need for scale as a priority and this led to many months of studies and extensive, professional evaluation that now underpin the Non-Binding Offer. In the Bank’s view, its proposal presents the best future for all the stakeholders of HSBC Bank Malta plc, and of course those of APS Bank plc,” APS said.

APS Bank said that it will keep the market informed through further company announcements whenever necessary as well as with customary Market Briefings, where appropriate.